#1 it’s not an article in the Washington Compost
#2 the Indiana governor was doing exactly what the author says such “deals” do.
“When you pick a winner, you automatically pick a thousand losers: smaller companies who lack Carrier’s clout, less-connected companies not close to Pence and so on. The economy loses because corporate welfare means politicians rather than markets are deciding the allocation of money and resources. It’s the opposite of free market economics.”
Small businesses never win when politicians offer incentives to individual companies, rather than establish a favorable business climate for ALL businesses and let the businesses rise and fall on their own merits. That is, lower taxes, decrease regulations, get rid of Obamacare and other mandates that choke all businesses.
Maybe this was a smart short-term political move, but I share the author’s opinion that it’s not good long-term policy. It’s the kind of thing democrats and RINOs like to do.
Ok, sorry about the wrong attribution. I disagree with the author in either case.
The concept of thousands of losers is more aptly applied to the people in regions where the Governors and Mayors ignore marketplace realities and don’t work to maintain or improve their tax bases & local job markets.
It is a strawman argument. Carrier has already competed in the market place against all and sundry, it wasn’t created like Solyndra. Carrier is being offered an accommodation to benefit they taxpayers because of Carrier’s success and resultant leverage; they are not being elevated or declared a winner. Any other company with equivalent leverage might be offered a sweetener to remain by their local State/City.
Trump is offering the biggest sweetener of all to all American companies, lowering corporate taxes & deregulation. This is being cooked up as an issue by people who want to derail Trump’s plan, delegitimize him and it is being passed around by those that do not understand the actual forces at work. The story sells well because we are all sensitized by Obama and his cronyism.
“Maybe this was a smart short-term political move, but I share the author’s opinion that it’s not good long-term policy.”
For the 100th time....the $7 million was ALREADY on the table. Pense made that offer a year ago. Trump made the deal based on the coming corporate tax rates, less regulations and the implied threat of losing defense contracts. The CEO of UT made the decision based on the sound federal policies coming down the pike...not the $7 million from Indiana. The CEO knows that Trump will get his policies through based on the makeup of the House and Senate.